Posted by JDseller on June 28, 2011 at 07:45:19 from (208.126.196.144):
I also so posted this on the tool talk forum.
I have a good laugh every time I see some yahoo on here talking about warranty repairs. I have worked at four different dealerships in my lifetime. They handled over fifty lines of equipment between them.
The dealer broke even about 20% and lost money 80% of the time on warranty. The bigger the company selling/making the product the worst the warranty coverage is for the dealer.
Examples of this: Have any of you read the back of the purchase order that you sign when you buy a piece of John Deere equipment??? There are several areas that the dealer loose money in.
1) The farmer is responsible for getting the equipment to the dealership for repairs. So you have a new tractor with like 50 hours on it and it quits/breaks. If I would send out a service tech than the service call is NOT covered under the warranty. If I send a truck to pick it up that is never covered either. So how would the average farmer react if I billed him for the service call or the pickup charge???? HE would raise cain. So most dealers end up eating this cost.
2) The repairs are covered at a flat rate labor time and parts are credited at dealer cost with no freight. So if the tech take more time than the warranty says it should then the dealer has to eat it or bill the customer. If the dealer needs to get the parts faster than his stock order then he has to eat the freight or bill the customer. How many times do you think that a customer would pay for the extra labor or freight??? I have only seen it happen a handful of times in the forty plus years I have been around dealerships.
3) Loaner equipment for the customer to use while his equipment is repaired is never covered either. Most dealership will try to cover the customer during the real important seasons. This cost is not covered.
4) Most of the short line equipment companies ONLY cover parts AT dealer cost, NO LABOR.
So you tell me why the dealer is an A$$hole for not wanting to do warranty on things he never sold???? Many of you think that every business other than yours should operate at a lose or at the best a break even. Many act like everyone other than them is making a fifty percent profit on everything they sell So they should be able to give the "special" customers a break. The average special customer is a guy that has never bought anything new and very few parts from the dealership. Plus complained that what he did buy was way too high priced. ( Sound like any of you on here????)
These attitudes are what most of the public around me has. I will not take any new repair customers unless they are referred by one of my current customers. I DO NOT MAKE VERY much on my repair work usually less then 15% of the total bill, most times it is closer to 10%. So I am not going to take grief for the little profit that you make any more.
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